Pop Quiz 9

Which is unlikely to be a valid cost unit used in service costing?

• cost per meal

• cost per hospital bed per night

• cost per passenger mile

• cost per paint pot

Depreciation of an asset can be found in a service costing statement for a bus company.

• TRUE

• FALSE

Which type of company below is unlikely to use service costing?

• 
  Taxi company

• Private hospital

• Hairdresser

• House builder

Service costing is used when a function is provided to the customer rather than actual tangible __________?

• 
  Products

• Materials

• Overheads

• Profits

Labour cost makes up the highest cost in service businesses.

• TRUE

• FALSE

Calculate the total fixed cost incurred for M Minus Tuition Centre.

• 2,200

• 2,000

• 200

• 1,200

The following are the possible fixed cost incurred in transportation service business EXCEPT:

i. Petrol & lubricants

ii. Insurance & road tax

iii. Repairs & maintenance

iv. Drivers’ wages

v. Annual depreciation

• i & ii

• iv & v

• i & iii

• iii & iv

Service industries are classified into industries that sell tangible and intangible services. The

following are the examples of INTANGIBLE services:

i. Kassim Baba Restaurant

ii. Umar Hana Tinted Workshop

iii. University Teknologi Mara Kedepan

iv. TM Tapah Maju Internet Service Provider

• i & ii

• ii & iii

• iii & iv

• i & iii